FILE PHOTO: Logo of GM atop the company headquartersSAN FRANCISCO - Tesla on Wednesday joined General Motors and Ford in being cautious about expanding electric vehicle production capacity, citing economic uncertainties and underscoring fears of a slowdown in demand.
GM said on Tuesday it would delay production by a year of Chevrolet Silverado and GMC Sierra electric pickup trucks at a plant in Michigan, citing flattening demand for EVs. "It does highlight that there could be a slowdown in EV in the near term," said Tom Narayan, global autos analyst at RBC Capital Markets. "But it has more to do with pricing and affordability than a rejection of EVs."Narayan said he expected this to be a "dip" that improves as prices of EVs fall and lower-priced variants are available.
But Musk said higher financing costs due to rising interest rates meant to fight stubbornly high inflation in some cases almost entirely offset the price reductions, making consumers looking to shift away from gas-guzzling vehicles wary.